General question about watches

[heresiarh]

Besides the higher end watches being gold and what not, what is there such a high price difference between the 'steel watches' that aren't precious metal.

I'm ignorant when it comes to watches but I know Rolex, Patek, etc etc cost an arm and a leg. But how are they different from Seiko, Citizen etc ... What is the difference between Swiss and Japenese movement?

I can only understand the exorbitant prices for precious metal / stone watches .. but the rest, beats me. Please educate.